Infosys is currently the top loser on the BSE; the stock, which had closed at Rs.1388.60 on Friday, opened much lower at Rs.1249.75 and soon slipped to a 52-week low at Rs.1219, down 12.5%.
The market is very disappointed as the Q4FY23 missed all estimates. Its revenue for the quarter came in 2.5% (QoQ) lower at Rs.37,441 crore while net profit came in 7% lower at Rs.6134 crore.
EBIT came in 4.5% lower at Rs.7877 crore and EBIT margin came in marginally power at 21.03% v/s 21.5%.
The disappointment is also on account of missing estimates. It has put its revenue growth guidance at 4-7% for FY24 which is much lower than estimates of 10 to 15% in FY23 and 6-8% for FY24 and lower than 13-15% given at the start of FY23.
Analysts are of the opinion that when the guidance band is wide at 300 bps, it usually indicates higher uncertainty ahead. But then this is also a cautious move, given the depressed demand scenario in USA which remains its main market.